Microsoft shifts services into the car, starts with Live Search

Microsoft has announced plans to add various services to its automotive …

While car companies worry about how best to convince consumers about that extended warranty and consumers are trying to figure out which vehicle is fuel-efficient but doesn't look like a toy, Microsoft has decided that the next best thing for your automobile is... search. The software giant has announced it will be expanding its Automotive Business Unit (ABU) to include services in addition to software. Adding services to existing software solutions is part of a recent and much broader Microsoft effort, but that's mostly been focused on Windows and Windows Live. The first automotive service is Microsoft Live Search for Devices (LS4D), which allows partners to develop web search applications for in-vehicle use.

LS4D can be added to Microsoft's existing entertainment and information (infotainment) technology. Carmakers can choose choose among voice commands, an in-car screen, or both, to give drivers access to the Live Search engine in cars and other vehicles. Microsoft did not disclose which automakers have already jumped on LS4D, but those already on board with Microsoft include Fiat in Europe, Ford in North America, and Hyundai-Kia in Asian markets.

LS4D connects to the Live Search Engine to retrieve listings from the White Pages (residential) and Yellow Pages (commercial) online phone books. This means the software can access up-to-date, location-aware Points of Interest (POI), including nearby restaurants, banks, coffee shops, movie theaters, postal services, hotel accommodations, and other non-commercial locations. The end-user can submit search requests through the application, which can then use LS4D to refine the search parameters. Location-aware search results can be added to the search request using either a default geographic location or the current GPS location, if available.

Microsoft has not yet revealed what other services it plans to push for in-car use, but all the Windows Live services that already have mobile versions available are possibilities. Microsoft's ABU has so far focused on software for playing music and communicating via connections with music players and mobile phones, but adding more services to the mix could help Microsoft stand out in the in-car market. That market is very fragmented, and Microsoft is competing with services that don't directly compare, such as General Motors' OnStar service, which offers features like stopping stolen cars in their tracks, which the software giant is unlikely to match.

The software-plus-services announcement shows that Microsoft has big plans for its automotive division, as so does the fact that the company is replacing Martin Thall, who guided ABU through the start-up period, with Tom Phillips, currently its general manager. Over his 16 years at Microsoft, Phillips has shipped more than 20 products, including a number of platforms, and has been responsible for bringing several new businesses to maturity. It is not clear what Martin Thall's new role will be.

Various automotive companies may be struggling at the moment, but Microsoft is increasing its investment in its ABU by more than 30 percent this fiscal year. By 2009, the ABU plans to release an integrated automotive platform that builds on Microsoft's current in-vehicle products. LS4D should be available for these and future releases of Microsoft Auto.

It's not surprising that Microsoft wants a part in expanding software and services for the automotive market: for most people, little has changed for decades when it comes to the in-car experience, and the industry seems to be waiting for someone to come up with something intuitive. This may mark the beginning of the in-car revolution but, even if it does, Microsoft will likely be hitting many bumps in the road in the years to come.